Investment destination
While the UAE has yet to be involved in Peru’s mining sector, companies such as the Abu Dhabi government-owned International Petroleum Investment Company, which has three exploration wells in Peru and is bidding for two more, and General Petroleum have already invested in the Latin American country’s hydrocarbon sector. Abdulrahman Saif Al Ghurair, chairman of Dubai Chamber of Commerce and Industry, said it was also looking at Latin American markets for new office branches. In May this year, a 40-strong delegation of Peru’s government ministers for economy, trade and tourism, as well as investors and business owners, visited the UAE and met leading organisations, including Mubadala investment group, Abu Dhabi Investment Authority and Emirates airline. The visit was part of the InPeru initiative, established last year to promote investment in the country, which has one of the fastest-growing economies in the world. Peru has also become a regular participant in Gulfood, Arabian Travel Market and Index Design and has established its own cultural events, such as Taste of Peru in Dubai’s Madinat Jumeirah complex and Peru Mucho Gusto, a week-long celebration of food from the country in the Grosvenor House hotel in Dubai Marina. Its rich gastronomic culture earned the nation the title of world leading culinary destination last year from the World Travel Awards. Its soil cultivates an abundance of crops ranging from asparagus, avocado and quinoa to organic bananas, cacao and coffee, all of which could help the UAE secure its food supply by opening up opportunities for suppliers and reexporters. “After mining, agriculture accounts for the second largest portion of Peru’s GDP,” says Silva-Santisteban. “Abraaj Capital recently invested in one of the
The biggest export from Peru to the UAE is bulletproof glass, which is used as construction material for skyscrapers
Peruvian exports to the UAE rose by more than 35 per cent last year
biggest gastronomic groups in Peru. The fact that Middle Eastern private funds are looking into gastronomic opportunities shows you the ties between the countries.” Peru’s cotton industry is also booming, thanks to its products being used by global fashion brands like Giorgio Armani, Tommy Hilfiger, Polo Ralph Lauren, to name a few. Its construction materials and plastics are other major Peruvian goods that the UAE could capitalise on, say trade experts. “The biggest export from Peru to the UAE is bulletproof glass, which is used as construction material for skyscrapers,” says Silva-Santisteban.
Being home to the largest single investment made by the UAE in South America – the DP World-operated port of Callao – Peru also offers many logistics-related opportunities. In fact, a logistics zone is now under development to link Collao with Lima international airport, which is being expanded to double its capacity. “This year is marking the difference for all the previous work that we have done in terms of events and fairs and taking missions to Peru. We strive to take one Peruvian company to the UAE each month and vice versa to keep the buzz going,” says Silva-Santisteban.
2013 November / December GC 17